Sometimes a stakeholder needs verification on one specific matter. Not a full financial statement audit. FinApt Group performs agreed-upon procedures engagements in line with ISRS 4400, delivering clear, factual findings on exactly what was tested.
What an Agreed-Upon Procedures Engagement Is
An AUP engagement is not an audit. We carry out specific procedures agreed in advance with you and, where relevant, a third party such as a lender, landlord, regulator or investor. We report only the factual findings from those procedures. No opinion, and no assurance conclusion. You and the other parties then draw your own conclusions from what we found.
This makes AUP engagements faster and more targeted than a full audit when the question at hand is narrow and specific.
Common Uses for AUP Engagements
- Accounts payable or receivable testing: verifying specific balances or transactions
- Loan securitisation and lender requirements: confirming specific financial data a lender has requested
- Stocktake procedures: factual verification of a stock count, without a full inventory audit opinion
- Turnover lease agreements: verifying reported turnover figures against agreed criteria, common in retail leases tied to a percentage of sales
- Management agreement compliance: checking specific contractual metrics or covenants have been met
- Debtors’ balances and controls: confirming specific receivables or control procedures on request
How an AUP Engagement Works
1. Agree the scope: you, and any relevant third party, agree exactly which procedures will be performed 2. Perform the procedures: we carry out the agreed tests and gather evidence 3. Report factual findings: a clear, factual report on what was found, with no opinion or assurance language attached
Because the scope is fixed in advance, AUP engagements are typically quicker to deliver than a full audit or assurance engagement.
AUP vs Audit vs Assurance
| | Agreed-Upon Procedures | Audit / Assurance | |—|—|—| | Opinion given? | No | Yes | | Scope | Specific, agreed in advance | Broad, professional judgement on risk areas | | Standard | ISRS 4400 | International Standards on Auditing | | Best for | A specific question a stakeholder needs answered | A full view of financial statements |
Why FinApt Group for Agreed-Upon Procedures
- We deliver AUP engagements alongside audit, due diligence and transaction advisory work. That experience helps us design the scope around what the requesting party actually needs.
- Delivered in line with ISRS 4400, giving stakeholders confidence in how the findings were reached
- Fast turnaround where the scope is narrow and well-defined
Frequently Asked Questions
What’s the difference between an AUP engagement and an audit?
An audit results in an opinion on whether financial statements are fairly presented. An AUP engagement reports only factual findings from specific, pre-agreed procedures, with no opinion given.
Who typically requests an AUP engagement?
Lenders, landlords, investors, regulators or management itself, when they need verification on one specific matter rather than a full audit.
Can an AUP report be used in place of an audit?
No. An AUP report does not provide assurance. It is not a substitute for an audit where an audit is specifically required, for licence renewal for example.
How long does an AUP engagement take?
Because the scope is fixed and narrow, AUP engagements are generally faster than a full audit. Timing depends on the specific procedures agreed.